Market Trends of Wood Vinegar Industry
Increasing Organic Farming Leading to Rising Demand
The increased practice of organic farming is increasing the demand for organic fertilizers and pesticides like wood vinegar in the market. Wood vinegar is used for both crop nutrition and crop protection, thereby, proving to be a natural and organic product for farming-related problems. The emphasis on sustainable agriculture and government support to the manufacturers are the other factors that augment the development of the market. Subsequently, the market for biological fertilizers and pesticides like wood vinegar has grown dramatically in response to the recent surge in interest in regenerative agriculture, organic farming, and soil health.
Wood vinegar is known to help eliminate pests as well as assist plant growth by accelerating the development of plants, which are highly suitable for organic farming. According to The Research Institute of Organic Agriculture (FiBL), in 2021, Australia has the largest organic agricultural land area across the globe, catering to 36.69 million hectares, followed by Argentina and France having 4.07 and 2.78 million hectares, respectively, thereby, propelling the growth of wood vinegar in the market. Therefore, the demand for organic food, leading to the growth of organic farming is expected to propel the growth of wood vinegar during the forecast period.
Asia-Pacific Emerges as the Largest Market
In Asian countries such as India where the agriculture sector holds a prominent share of the country's GDP, wood vinegar has paved the way to boost their crop-yielding capacity while maintaining their quality. Also, the growing inclination of consumers across the region towards organic food products has led to an increasing number of farmers adopting organic agricultural practices which in turn is strongly driving the market of biopesticides and bio-based fertilizers, such as wood vinegar in the agricultural sector.
According to the Ministry of Statistics and Programme Implementation (MoSPI), the share of the net area under organic farming in India increased from 1.39% in the financial year 2018 to 2.45% in the financial year 2022. Further, wood vinegar has a prominent application in the feed industry as it helps in balancing the bacterial level in the digestive tract of animals. Such factors have led to a rising number of wood vinegar manufacturers across the region to meet the burgeoning demand for different industries primarily food and beverage, agriculture, feed supplements, and others. Therefore, the demand for wood vinegar in the agriculture and feed industry is expected to increase its demand in the overall region.
